- Long Term & Short Term
Capital Gains in Case of Shares or any
other security listed in a recognized Stock Exchange in
India or units of UTI/ Mutual Fund will be treated as Short
term Capital Gain if asset is held for not more than 12
Months. If they are held for more than 12 months it will
be considered long Term Capital Assets.
- Cost of Acquisition for Bonus
Shares or Units
Cost of acquisition of Bonus shares
or units will be taken as nil and net sales proceeds after
deducting expenses will be taken as Capital Gains. The period
of holding of such Bonus Shares or Security will be considered
from the date of allotment of such shares/ security.
- Cost of Acquisition of Shares
on Conversion of Debentures
Under Section 49 (2A) the cost of acquisition
of shares will be the value extinguished out of the cost
of debentures. This will be applicable in the case where
shares are received on conversion of debentures.
- Cost of Acquisition of shares/
Security in the case of ESOP
The cost of acquisition of shares /
securities in the case of ESOP, will be the fare market
value which has been taken into account for computing the
value of Fringe Benefits, where capital Gain arises from
transfer of Equity Shares/ Security.
- Long Term Capital Gain on Transfer
of Equity Shares/ Units of Equity Oriented Fund.
Any income arising from the transfer
of a long term capital asset being Equity shares/Units of
Equity oriented fund is fully exempt (Nil tax is Payable)
Where the transaction of sale of Such Equity shares/units
is entered into through Reorganized Stock Exchange and such
transaction is chargeable to securities Transaction Tax
(STT). Equity Oriented Fund means a Fund where more than
65% of the investible funds are invested in the equity shares
of domestic companies.
- Short Term Capital Gain on transfer
of Equity Shares in a Company or unit of an Equity oriented
Fund.
Any income arising from the transfer
of short term capital asset, being Equity Shares in a listed
Indian company or units of Equity Oriented Fund, and the
transaction of such sale is entered through recognized stock
exchange & such transaction is chargeable to STT ( Securities
Transaction Tax), Such short Term Capital Gain will be taxed
at the Flat rate of 15%
